FLENSBURG, Germany — Adult retail chain Beate Uhse AG on Tuesday received a €2.7 million loan from financial investment firm Robus Capital to help keep the company afloat.
With fresh capital, Beate-Uhse can replenish its stock at its stores and further reorganize the European retail chain, which filed for insolvency last month.
The cash infusion “gives the management again first room for maneuver in order to further promote the reorganization," Beate Uhse told German regulators.
For Robus Capital, it’s not the first investment the firm has made with the European chain that sells lingerie, adult DVDs and sex toys and novelties.
Robus Capital previously issued a corporate bond valued at €30 million benefitting Beate Uhse.
The bond, however, eventually led to the company’s filing for insolvency. Last month, Beate Hause found that it couldn’t come up with an agreement with creditors to repay the €30 million debt by 2019 as agreed upon.
Beate Uhse’s application for insolvency, which is equivalent to Chapter 11 in the U.S., allows for a plan of reorganization to keep the business running and pay creditors over time under jurisdiction of the court system.
Revenue has been on a long slide for more than a decade for the Flensburg, Germany-based company, which grew to 300 stores with sales peaking at €285 million in 2005.
Ten years later, in 2015, Beate Uhse, found revenue totaling less than half that figure at €129 million.
Michael Specht, who took over as Beate Uhse’s CEO in April, said last month that he’s hopeful for the 71-year-old company’s future.
"We have followed a path in which we are very confident that we will be able to restructure the group as a whole," he said.
